CNNMoney: $3 gasoline can’t last
CNNMoney’s Ivana Kottasova has a post today about the International Energy Agency’s warning about oil prices being too low:
It says plunging oil prices will damage the U.S. shale oil boom and cause supply problems down the road.
Oil prices have dropped by 30% in the past four months, putting oil producers under pressure. The low prices could deter investment in production, which will eventually hurt supply, the agency’s chief economist Fatih Birol said.
In its latest outlook, the IEA did say that lower oil prices could could help oil importing countries and their economies and even lead to increased demand.
But higher prices were needed to ensure future energy security.
